Subscriptions to periodicals have traditionally been sold using direct mail, telemarketing, and with the use of “blow-in” or “bind-in” cards enclosed in copies of a magazine which are filled in by the consumer and mailed back to the publisher. Publishers place blow-in subscription cards by loosely inserting the cards into periodicals, such as magazines, by air injection. Publishers insert bind-in cards into the periodicals by, for example, binding subscription cards into issues during the printing process. The typical methods of acquiring a subscription to a periodical require a customer to complete one of the enclosed cards and send the completed card and a payment to the publisher. Furthermore, the consumer is typically required to complete a card for each periodical they wish to subscribe to, regardless of whether they are issued by the same publisher.
The initiation of a subscription based upon the typical method of completing one of the enclosed cards and sending the completed card and a payment to the publisher, requires a great deal of time and patience on the part of the consumer as the subscription request is processed. Moreover, this method may be viewed by some as having certain inefficiencies, as it relies upon many different factors outside the control of the publisher, including the consumer remembering to complete and mail the subscription card, the post office successfully delivering the request, the correct processing of the request by the publisher, and the successful completion of payment, either through a credit instrument, or through a “bill me” option. All of these factors lead to lost sales for the publisher as well as a retailer since a consumer is unlikely to purchase a periodical from a retailer while the subscription is being processed. Furthermore, it may be months before the publisher realizes any payment for the requested subscription.
One attempt at creating a method of selling subscriptions to specific periodicals in a retail environment is described in Walker et al., U.S. Pat. No. 5,926,796 (“Walker”). Walker generally discloses a method and apparatus for generating subscription sales at a point-of-sale (POS) terminal at the time the consumer purchases a single issue periodical from the retailer. In the Walker system, a consumer wishing to purchase a magazine, first selects a magazine from the retail display and transacts business with the retailer at a POS terminal. The clerk scans the UPC symbol into the POS terminal and the POS terminal recognizes that the magazine is available for a subscription price. The clerk asks the consumer if they would like to initiate a subscription to that periodical, and if so, the customer completes a subscription card which is returned to the clerk for data entry. The consumer pays for the subscription with any payment means including, for example, cash, debit/credit card, or check. The transaction is then completed with the publisher being informed of the subscription, and the consumer receiving the purchased magazine as the first magazine of the subscription, and at the discounted subscription price. If the consumer wishes to purchase another magazine subscription, they must complete another transaction, even if the magazines are produced by the same publisher.
Consumers, however, have grown accustomed to the ease of purchasing retail level gift certificates, wherein the consumer is able to prepay for merchandise and still maintain the ability to choose from the entire stock of retail goods available. One example of this is gift certificate cards, or giftcards, which have recently gained in popularity as an alternative to traditional paper gift certificates. Giftcards are typically provided in a form similar to that of credit cards. Accordingly, a typical giftcard includes a rectangular plastic body having a strip for magnetically storing information. The giftcard is redeemable for merchandise or services provided by the retailer that issued the giftcard.
Giftcards are typically in an inactive state until purchased. When the giftcard is purchased, it is typically swiped through a card reader which reads the information stored on the giftcard and forwards the information to the retailer's computer center. The computer center, in turn, forwards information to a giftcard processor, which may be provided by the retailer or, more typically, an outside party, thereby activating the giftcard. The giftcard may then be used at a store of the retailer.